2013 (8) TMI 808

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....deration in the present appeal is whether the aircraft owned by the Assessee and used for its business would be exempt from wealth tax?" 4. The Assessing Officer vide order dated 31.03.2006 has held that the two aircrafts owned by the Assessee and used for its own business purposes were chargeable to wealth tax. The Assessing Officer while interpreting the provisions of section 2 (ea) (iv) of the Wealth Tax Act - 1957 held that aircraft being used other than for commercial purposes were chargeable to wealth tax. As per the Assessing Officer the aircraft which were either used for running the same for earning business income or held as stock in trade would be exempt from wealth tax but an aircraft used by the Assessee for its own business....

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....that the Assessee was neither in the business of commercially operating the aircrafts for hire nor was holding the same as stock in trade but was using the said aircrafts for the purposes of transportation/travel of its directors and executives and as such the same were not being used for commercial purposes and were not exempt from wealth tax. 8. We find no merit in the submission of the Learned Counsel for the Revenue. Section 2 (ea)(iv) of the Wealth tax act, 1957 lays down as under: (ea) "assets", in relation to the assessment year commencing on the first day of April, 1993, or any subsequent assessment year means- ..... (iv) yachts, boats and aircrafts (other than those used by the Assessee for commercial purposes); 9. T....